If you are struggling with debt that you cannot repay, you may have already considered filing bankruptcy. Filing bankruptcy may sound fairly straightforward. It just requires filling out some paperwork, taking inventory of your debts, and ultimately getting a new financial start. At a time when you are struggling financially, you may consider filing bankruptcy pro se – that is, without the help of an attorney. However, this is a mistake.
Without the help of an attorney, you could make mistakes and bankruptcy could actually end up costing you more in the long run. Below, our Orlando bankruptcy lawyer explains further.
You May Not Have Options if You Change Your Mind
It is a common misconception that if you fileChapter 7 bankruptcy and change your mind later on, you can ask to have your case dismissed. So, why would you want to stop the bankruptcy process?
After you file, the court will appoint a bankruptcy trustee to oversee your case and complete many tasks, such as attending the meeting of the creditors. The bankruptcy trustee will also identify property that can be seized to sell and repay your creditors. At this point, you cannot ask the court to dismiss your case just because you did not realize certain property would be taken and sold. You may not even be able to convert to Chapter 13, in which borrowers do not lose property.
Any request for dismissal must be approved by the court and judges do not typically allow them just because a borrower does not want to continue the process. An attorney can advise you beforehand if you may lose property so you can make an informed decision before filing.
Correcting Mistakes is Expensive and More Complex
Mistakes are more likely to happen when you file bankruptcy pro se. If you make an error, you may have to contact an Orlando bankruptcy lawyer to correct it anyway. In some cases, an attorney cannot help you fix a mistake after you have filed. Even when they can, fixing the mistake can be much more expensive than it would have been if you had filed correctly at the beginning.
A lawyer can provide the sound advice you need from the very beginning of your case to ensure no mistakes are made. While this will incur legal fees, they are often less expensive than fixing costly mistakes or facing the consequences of them. For example, if you have not claimed the proper exemptions, a lawyer may not be able to stop the trustee from selling your vehicle or other valuable property.
You May Choose the Wrong Type of Bankruptcy
The most common types of bankruptcy filed by borrowers are Chapter 7 andChapter 13. While Chapter 7 discharges most debts, Chapter 13 reorganizes debt into a repayment plan. If you file bankruptcy pro se, you may choose the wrong type. This can result in an unnecessary loss of property, a dismissal of your repayment plan, or a repayment plan that you cannot afford. A lawyer will review the facts of your case and advise on the type of bankruptcy that is right for you.
Filing at the Wrong Time
It is important to note that filing too late, or even too soon, can result in certain types of debt not being discharged. People who file bankruptcy pro se do not often realize the following:
- Recent cash advances or credit card use may not be discharged.
- Filing too early can result in certain tax debt not being discharged.
- Receiving a tax refund or bonus just before filing could increase your income past the limit for Chapter 7 and force you to file Chapter 13 instead.
An attorney will time your bankruptcy strategically to ensure maximum debt relief while also avoiding challenges that may arise in your case.
Missed Deadlines
There are deadlines in all bankruptcy cases and the courts are very strict about them. People who file pro se bankruptcy are often unaware of these deadlines and can result in the case being dismissed. When filing bankruptcy there are deadlines on the following:
- Filing all necessary schedules and other documents in a timely manner.
- Completing credit counseling prior to filing.
- Completing a financial management course.
- Attending the meeting of the creditors.
If you miss any of the above deadlines, or any others, the court may dismiss your case and you will have to refile, incurring new fees when you do. Refiling too soon can also impact the automatic stay, meaning you may not have certain protections from creditors. A lawyer will ensure that you meet all deadlines so you do not face unnecessary problems during your case.
Challenges from Creditors and Trustees
If your bankruptcy paperwork is inaccurate or incomplete, the trustee may become suspicious of fraud and investigate you. Even one honest mistake can result in a loss of your discharge. Additionally, creditors may challenge your case if they suspect you are committing fraud, such as hiding property to shield it from liquidation. A bankruptcy lawyer can ensure that your case is prepared correctly so you can avoid challenges and ensure that the process is as smooth as possible.
Lifting the Automatic Stay
As soon as you file bankruptcy, the court will issue an automatic stay that prohibits creditors and lenders from contacting you to recover the debt. The automatic stay remains in place throughout your bankruptcy case. While the automatic stay can stop harassing calls from creditors and legal actions such as foreclosure, lenders and creditors can ask the court to lift the stay for a specific debt. Without an attorney by your side, you may not be able to fight back against these requests and will not have the protection you need.
Our Bankruptcy Lawyer in Orlando Can Provide the Strong Legal Representation You Need
Bankruptcy can provide many benefits and working with an Orlando bankruptcy lawyer can help ensure that you realize all of them. At The Benenati Law Firm, our experienced attorney can guide you through the process, ensure no mistakes are made, and provide the sound legal advice you need to obtain the best possible outcome. Call us now at 407-777-7777 or fill out our online form to schedule a consultation and to get the legal help you need.
